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In Reply to: New York Life Term Policy posted by Michael Keck on March 21, 2003 at 11:17:34:
Either one of two things happened to you. One, the agent added to term to make a bit more in commissions, or two, maybe he felt that the amount of whole life that you could afford was not adequate enough to meet the need that he may have felt you had at the time, so he added a term rider to fill the gap. How do you figure out which of the two happened? Well, if he was a "salesman" that dropped by one day, talked you into buying something you weren't sure you wanted in the first place without asking questions to determine your need, then number one is probably your answer. If he was a "professional agent" whom you feel you could trust and depend on and he did some type of a Needs Analysis to determine how much cash would be needed, in the event of your untimely death, then two is probably your answer.
For example: If during your meeting you expressed only a concern to cover funeral cost, then more than likely a whole life would have been sufficent enough. However, if you expressed some other concerns in regards to your mortgage, paying off other debts, income replacement, or maybe some money for your childrens education, then you may not have been able to afford that mucy whole life and therefore he added term to meet that need. I have found in my years of an insurance agent, and some of the post will back this up, people don't remember what an insurance company does for them, they only remember what they don't do. If you have a need to protect yourself against all those things I mentioned, then when you pass, your spouse won't remember the small whole life near as much as he will all the outstanding debt that he will then be face with to pay alone.
Now having said all that, I will say this. I agree with one of the replies in the sense that you can drop your term rider and your premiums will go down, however, if you can still afford the premiums I recomend you keep paying them. The term rider more than likely had nothing to do with your premium increase; that is the whole life. I'm not sure of your age, but if you are under age 50, I would recomend converting to a Universal Life policy. It will do everything a whole life policy will do and some more. Let me leave you with this thought.
There is a legend of three riders crossing the desert at night. Out of the darkness came a voice commanding them to dismount and fill their pockets with peebles. After they had oveyed and remounted, the voice declared, "Tomorrow at sun-up you will be both glad and sad.
When dawn came, they reached into their pockets and discovered not pebbles, but diamonds. Then they were both glad and sad - glad they had taken as much as they had; sad they had not taken more. And so it is with life insurance.
Good luck
: About 7 years ago my wife decided she wanted to
: purchase a term policy to help with funeral costs
: etc. in the event of an untimely passing.We both
: currently have 3 whole life policies betwwen us
: in addition to the term policy.All of these were written by an agent who has since passed on.Our
: new agent informed my wife late last year that the term policy was not worth keeping due to the
: rising premium.He sent my wife the form to
: terminate the policy and then informed us that this was a term RIDER and that there was no cash value.We were not told this when she took out the
: policy.We figure we paid in over $2000 on this policy.We feel like we were robbed.Is there anything we can do to recoup our loss.
: Sincerely, Mike & Barbara Keck